Stamp Duty in Malaysia When You Buy a New Launch Home

You pay two stamp duties when you buy a home in Malaysia. One is on the transfer of the property, from 1% to 4% in tiers. The other is 0.5% of your home loan. A first-time Malaysian buyer of a home up to RM500,000 pays neither, but serviced apartments and SOHOs don’t qualify, and most new launches on this site are serviced apartments.

The two stamp duties

The transfer (the MOT). The memorandum of transfer is the document that moves the property into your name. Its stamp duty is worked out slice by slice, not on the whole price at one rate:

Part of the price	Rate
First RM100,000	1%
RM100,001 to RM500,000	2%
RM500,001 to RM1,000,000	3%
Above RM1,000,000	4%

It is charged on the price or the market value (what a valuer says the property is worth), whichever is higher, and the buyer pays it.

The loan agreement. This one is a flat 0.5% of what you borrow, paid by the borrower.

Both are filed with LHDN (the Inland Revenue Board, Malaysia’s tax office) through the e-Duti Setem system on MyTax.

Two worked examples

To run your own numbers, use our stamp duty calculator. It has a box to tick for serviced apartments.

The first-home exemption

You pay no stamp duty on the transfer or on the loan agreement if all of these are true:

• You are a Malaysian citizen.
• You have never owned a home, alone or jointly. A home you got as a gift or inheritance counts.
• The price and the market value are both RM500,000 or less. If either one is higher, you lose the whole exemption, not part of it.
• The home is a house, a condominium unit, an apartment or a flat, bought only to live in.
• Your sale and purchase agreement is signed between 1 January 2021 and 31 December 2027.
• You haven’t used this exemption before.
• For the loan duty: the loan comes from a bank or another approved lender.

The end date has moved once already. It was 31 December 2025 until two amendment orders, in force from 1 January 2026, pushed it to 31 December 2027. Nobody can promise it will move again.

Why serviced apartments are left out

The government orders that set up the exemption define the home they cover as a house, condominium unit, apartment or flat. LHDN’s declaration form for the exemption goes further and asks you to confirm the unit is not a SOHO, SOFO, SOVO (small office-style units) or service apartment. Asked about the extension to 2027, LHDN replied in writing that the same conditions still apply.

This matters on this site, because many projects we list are serviced apartments. A serviced apartment priced well under the cap still does not qualify for the first-home exemption. The Malaysian Bar disputes this, but that is a professional view, not the law LHDN applies.

Foreign buyers

From 1 January 2026, a foreigner who is not a permanent resident, or a foreign company, pays a flat 8% on the transfer when buying a residential property. For this rate, LHDN counts a serviced apartment or SOHO used only as a home as residential. Other real property, such as commercial property, is charged a flat 4%. Our calculator doesn’t cover either case.

What to check before you sign

• Are the price and the market value both RM500,000 or below?
• Is the unit a condominium or apartment, or is it a serviced apartment or SOHO? If you’re not sure, ask your lawyer before you sign.
• Have you ever owned a home in any way, including by gift or inheritance?
• Will your sale and purchase agreement be signed by 31 December 2027?
• Have you set aside cash for the stamp duty, on top of your down payment?

This is a general guide, not legal or tax advice. Check your own case with your lawyer.